Nepc Private Markets Investment Due Diligence Report
Penwood Select Industrial Partners VII
Non-Core Real Estate
EXECUTIVE SUMMARY
Penwood Real Estate Investment Management ("Penwood," the "Manager," or the "Firm") is a commercial real
estate investment manager that invests in value-add industrial properties in select gateway markets of the United
States. The Firm will aim to add value through acquisition, management, rehabilitation, and/or development of
properties.
Penwood is currently raising capital for Penwood Select Industrial Partners VII (the "Fund" or "Fund VII"), the Firm's
seventh value-add industrial fund. The Fund is a continuation strategy of Penwood's predecessor funds, which began
in 2005. The Manager seeks to leverage its local expertise and operating partner relationships to gain access to
industrial investments in supply-constrained and high barrier-to-entry markets with strong demand. Historically, the
Manager has invested in Southern California, New Jersey, Pennsylvania, and Las Vegas. Penwood aims to put in
place tailored capital structures which provides downside protection while the Fund conducts its value creation
process. The Fund's representative deals have included value-add strategies such as re-leasing, repositioning,
redevelopment, and ground-up development.
Through strong property-level fundamentals and demand drivers, the Manager believes that there is significant value
growth potential in the Fund's targeted markets. The industrial market has seen an inflow of capital due to tailwinds
led by the increase in e-commerce and the need for improved supply chain logistics. These market dynamics have
created an opportunity throughout the United States, specifically in dominant seaports. These high barrier to entry
markets remain well leased with investment grade tenants with strong rental growth and appreciation upside.
Penwood Select Industrial Partners VII is targeting a fundraise of $500 million. The Fund is targeting a net IRR of 10%
to 12% and a net multiple of 1.45x.
Positives:
NIE
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